According to a Bloomberg article, CIT Group agreed to sell its student lending business to Nelnet Inc. for about $1.1 billion.
Most of the proceeds will be used to repay debt secured by student loans, leading to a net gain in the second quarter, CIT noted in a recent regulatory filing. Completion is expected by April 25 according to Bloomberg. Nelnet is a consumer finance company based in Lincoln, Nebraska.
The deal covers all of CIT’s government-guaranteed student loan assets and servicing rights, the firm said. While Chief Financial Officer Scott Parker described the current holdings as low-risk, “long term, they don’t kind of fit with the business,” he told analysts in October.
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